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FTC Solar (FTCI)
NASDAQ:FTCI
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FTC Solar (FTCI) AI Stock Analysis

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FTCI

FTC Solar

(NASDAQ:FTCI)

Rating:56Neutral
Price Target:
$6.00
▲(0.17% Upside)
FTC Solar's overall stock score is primarily impacted by its weak financial performance, characterized by consistent losses and negative cash flows. Despite strong technical indicators and positive corporate events, such as a significant financing facility, the company's valuation remains poor due to negative earnings. The earnings call provided some optimism with revenue growth, but financial challenges persist.
Positive Factors
Contract wins
FTC Solar's backlog increased to $502mn, driven by Tier 1 contract wins, solidifying its position with globally diversified Tier 1s.
Strategic financing
Secured a $75mn strategic financing facility, extending liquidity runway and opening new customer channels.
Technology enhancements
Tech enhancements like dual-haul stow and 2000V readiness support long-term differentiation.
Negative Factors
Guidance expectations
3Q25 guidance below Street's expectations, implying modest sequential growth.
Margins and scale
Margins remain under pressure due to lack of scale, with gross margins expected to stay negative.
Timing risk
Sensitivity to project timelines creates potential timing risk for revenue recognition and other financial targets.

FTC Solar (FTCI) vs. SPDR S&P 500 ETF (SPY)

FTC Solar Business Overview & Revenue Model

Company DescriptionFTC Solar, Inc. is a leading provider of solar tracker solutions for utility-scale solar energy projects. The company is focused on designing, manufacturing, and selling advanced solar tracking systems that optimize the energy output of solar installations. Operating primarily in the renewable energy sector, FTC Solar aims to accelerate the adoption of solar energy by providing cost-effective and efficient solar tracker solutions.
How the Company Makes MoneyFTC Solar generates revenue primarily through the sale of its solar tracker systems to large-scale solar energy projects. These systems are designed to enhance the efficiency of solar panels by adjusting their positioning in response to the sun's movement, thereby maximizing energy production. The company's revenue model is based on direct sales of its products to solar developers and engineering, procurement, and construction (EPC) firms. FTC Solar may also benefit from strategic partnerships and collaborations with key players in the solar energy industry, which can enhance its market reach and product offerings. Additionally, the company's focus on innovation and cost-effectiveness contributes to its competitive positioning and ability to capture market share in the growing renewable energy sector.

FTC Solar Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant year-over-year revenue growth and strategic financial moves, such as the new financing facility, which poised the company for future opportunities. However, financial challenges, including gross losses and market uncertainties impacting revenue, suggest a cautious outlook.
Q2-2025 Updates
Positive Updates
Revenue Growth Year-over-Year
Revenue for the second quarter of 2025 was $20 million, representing a 75% increase compared to the year-earlier quarter due to higher product volume.
Strategic $75 Million Financing Facility
FTC Solar entered into a $75 million financing facility with Cleanhill Partners, providing financial stability and opening doors to new business opportunities.
Innovative Product Offerings
FTC Solar introduced multiple product advancements, including a high hail stow solution capable of an 80-degree stow angle and an extra-long tracker for 2,000-volt systems, aiming to improve product appeal and customer flexibility.
Reduced Operating Expenses
Non-GAAP operating expenses reduced to $6.5 million, marking the seventh consecutive quarter of OpEx reductions and the lowest level since 2020.
Negative Updates
Gross Loss and Financial Challenges
Second quarter GAAP gross loss was $3.9 million, and non-GAAP gross loss was $3.5 million. An unexpected $4 million accrual related to a joint venture facility impacted financial results.
Market Uncertainty Impact on Revenue
Revenue guidance for the third quarter was set between $18 million and $24 million, reflecting the impact of market uncertainty on customers' projects.
Continued Adjusted EBITDA Loss
Adjusted EBITDA loss for the second quarter was $10.4 million, which was at the top end of the guidance range. Excluding a $4 million charge, the loss would have been $6.4 million.
Company Guidance
During the FTC Solar Second Quarter 2025 Earnings Conference Call, the company provided several key metrics and insights into its financial performance and future outlook. Revenue for the second quarter was $20 million, within the guidance range of $19 million to $24 million, marking a 4% decrease from the prior quarter but a 75% increase year-over-year. The non-GAAP gross loss was $3.5 million, or 17.4% of revenue, with operating expenses on a non-GAAP basis down to $6.5 million, the lowest since 2020. Adjusted EBITDA loss was reported at $10.4 million, at the high end of guidance, though excluding a $4 million joint venture-related accrual, it would have been $6.4 million. Looking ahead, FTC Solar predicts third-quarter revenue between $18 million and $24 million, with non-GAAP gross profit potentially reaching up to 2.5% of revenue, and an adjusted EBITDA loss ranging from $10.8 million to $6.8 million. Additionally, a $75 million financing facility with Cleanhill Partners was highlighted as a significant boost to the company’s balance sheet, which is expected to support future growth and an anticipated acceleration in bookings and backlog.

FTC Solar Financial Statement Overview

Summary
FTC Solar is facing financial difficulties with declining revenues, consistent losses, and negative cash flows. The balance sheet remains moderately leveraged, but the company needs to address its operational inefficiencies and improve cash flow management to stabilize its financial health.
Income Statement
45
Neutral
FTC Solar's income statement shows persistent losses, with a negative net profit margin and continuous EBIT and EBITDA losses. Revenue has decreased significantly from previous years, indicating a challenging business environment. Although the gross profit margin improved slightly in TTM, the company still faces substantial profitability concerns.
Balance Sheet
50
Neutral
The company's balance sheet exhibits a moderate debt-to-equity ratio, suggesting some financial leverage but not excessively high. The equity ratio indicates a low proportion of equity to total assets, which could pose risks. However, the company has managed to maintain some level of equity despite ongoing losses.
Cash Flow
40
Negative
The cash flow statement shows negative operating and free cash flows, reflecting operational and capital challenges. The free cash flow growth rate is negative, indicating cash flow deterioration. However, financing cash flows have been positive, suggesting reliance on external funding to support cash needs.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue64.13M47.35M127.00M123.07M270.52M187.35M
Gross Profit-15.51M-12.59M8.31M-27.23M-32.55M3.64M
EBITDA-47.69M-46.04M-49.00M-97.30M-105.37M-16.88M
Net Income-46.84M-48.61M-50.29M-99.61M-106.59M-17.32M
Balance Sheet
Total Assets82.95M89.93M123.07M134.40M243.02M71.39M
Cash, Cash Equivalents and Short-Term Investments3.52M11.25M25.23M44.38M102.19M32.36M
Total Debt11.82M10.63M1.86M1.20M1.79M1.78M
Total Liabilities73.91M70.89M60.60M67.95M100.15M63.94M
Stockholders Equity9.04M19.04M62.47M66.45M142.87M7.45M
Cash Flow
Free Cash Flow-30.63M-36.34M-53.47M-55.49M-133.88M-767.00K
Operating Cash Flow-29.84M-34.70M-52.66M-54.51M-132.85M-511.00K
Investing Cash Flow8.10M6.26M-397.00K-4.25M21.31M1.87M
Financing Cash Flow14.50M14.50M33.95M903.00K180.37M23.78M

FTC Solar Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.99
Price Trends
50DMA
5.41
Positive
100DMA
4.55
Positive
200DMA
4.03
Positive
Market Momentum
MACD
0.29
Positive
RSI
52.14
Neutral
STOCH
35.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTCI, the sentiment is Positive. The current price of 5.99 is above the 20-day moving average (MA) of 5.78, above the 50-day MA of 5.41, and above the 200-day MA of 4.03, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 52.14 is Neutral, neither overbought nor oversold. The STOCH value of 35.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTCI.

FTC Solar Risk Analysis

FTC Solar disclosed 1 risk factors in its most recent earnings report. FTC Solar reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

FTC Solar Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$35.51B8.11-11.05%1.89%8.55%-8.72%
56
Neutral
$91.33M-175.83%-17.53%8.53%
56
Neutral
$47.79M-65.81%-49.36%-32.19%
54
Neutral
$25.23M-84.64%-26.62%-65.66%
46
Neutral
$61.84M307.38%-54.68%63.56%
45
Neutral
$27.82M-47.48%22.78%-27.59%
40
Underperform
$25.14K-21.91%16.55%15.72%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FTCI
FTC Solar
5.99
3.94
192.20%
BEEM
Beam Global
2.44
-2.13
-46.61%
NOVAQ
Sunnova Energy International
0.02
-10.45
-99.81%
SPRU
Spruce Power Holding
1.56
-1.10
-41.35%
MAXN
Maxeon Solar Technologies
3.66
-4.59
-55.64%
TURB
Turbo Energy, S.A. Sponsored ADR
2.26
0.88
63.77%

FTC Solar Corporate Events

Shareholder Meetings
FTC Solar Amends Stock Incentive Plan at Special Meeting
Neutral
Sep 4, 2025

On September 4, 2025, FTC Solar, Inc. held a Special Meeting of Stockholders where key decisions were made to amend the company’s 2021 Stock Incentive Plan. The stockholders approved an amendment to reserve an additional 2,000,000 shares of Common Stock under the plan. Additionally, the issuance of 6,836,237 shares of Common Stock upon exercise of certain Warrants was approved, exceeding the exercise caps. These decisions are expected to impact the company’s stock management and potentially influence its market positioning by providing more flexibility in stock incentives and warrant exercises.

Executive/Board ChangesPrivate Placements and FinancingFinancial Disclosures
FTC Solar Announces Board Changes Amid Revenue Surge
Positive
Aug 5, 2025

On August 5, 2025, FTC Solar announced the resignation of Dean Priddy from its Board of Directors due to retirement, with Tony Alvarez appointed as an Independent Director and Chair of the Audit Committee. The company reported a 74.9% year-over-year increase in second-quarter revenue, reaching $20 million, and secured a $75 million strategic financing facility, positioning itself for future growth and profitability.

Private Placements and FinancingBusiness Operations and Strategy
FTC Solar Secures $75 Million Financing Facility
Positive
Jul 7, 2025

On July 2, 2025, FTC Solar announced a $75 million strategic financing facility with Cleanhill Partners and other investors, which includes an initial term loan of up to $37.5 million. This financing aims to enhance the company’s balance sheet, support growth, and provide liquidity, with $14.3 million already received and an additional $23.2 million expected in the third quarter of 2025. The investment is seen as a vote of confidence in FTC Solar’s innovative technology and future potential, as the company has recently secured over 6.5 gigawatts of new business with Tier 1 customers.

Shareholder Meetings
FTC Solar Holds Annual Stockholders Meeting on June 11
Neutral
Jun 11, 2025

FTC Solar, Inc. held its Annual Meeting of Stockholders on June 11, 2025, where key decisions were made regarding the company’s governance and financial oversight. During the meeting, stockholders elected directors to serve until 2028 and ratified the appointment of BDO USA, P.C. as the independent registered public accounting firm for the year ending December 31, 2025, reinforcing the company’s commitment to maintaining robust financial practices.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 22, 2025